AAR CORP (AIR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIR - US0003611052 - Common Stock
107.06 USD
+3.39 (+3.27%)
107.32 USD
+0.26 (+0.24%)
We assign a fundamental rating of 5 out of 10 to AIR. AIR was compared to 73 industry peers in the Aerospace & Defense industry. AIR has only an average score on both its financial health and profitability. AIR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AIR was profitable.
- In the past year AIR had a positive cash flow from operations.
- In the past 5 years AIR has always been profitable.
- In the past 5 years AIR always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.90%, AIR is in line with its industry, outperforming 56.16% of the companies in the same industry.
- AIR's Return On Equity of 6.03% is in line compared to the rest of the industry. AIR outperforms 56.16% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.32%, AIR is in the better half of the industry, outperforming 71.23% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AIR is in line with the industry average of 8.56%.
- The last Return On Invested Capital (8.32%) for AIR is above the 3 year average (7.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 6.03% | ||
| ROIC | 8.32% |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
1.3 Margins
- AIR has a Profit Margin (3.17%) which is in line with its industry peers.
- AIR's Profit Margin has improved in the last couple of years.
- AIR's Operating Margin of 9.40% is in line compared to the rest of the industry. AIR outperforms 58.90% of its industry peers.
- In the last couple of years the Operating Margin of AIR has grown nicely.
- Looking at the Gross Margin, with a value of 19.29%, AIR is doing worse than 64.38% of the companies in the same industry.
- AIR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.4% | ||
| PM (TTM) | 3.17% | ||
| GM | 19.29% |
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
2. Health
2.1 Basic Checks
- AIR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- AIR has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AIR has more shares outstanding
- The debt/assets ratio for AIR has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.52 indicates that AIR is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.52, AIR is in line with its industry, outperforming 47.95% of the companies in the same industry.
- A Debt/Equity ratio of 0.61 indicates that AIR is somewhat dependend on debt financing.
- AIR's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. AIR is outperformed by 65.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.52 |
ROIC/WACC0.83
WACC10%
2.3 Liquidity
- A Current Ratio of 2.84 indicates that AIR has no problem at all paying its short term obligations.
- The Current ratio of AIR (2.84) is comparable to the rest of the industry.
- AIR has a Quick Ratio of 1.31. This is a normal value and indicates that AIR is financially healthy and should not expect problems in meeting its short term obligations.
- AIR has a Quick ratio (1.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
- AIR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.72%, which is quite impressive.
- AIR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.75% yearly.
- Looking at the last year, AIR shows a quite strong growth in Revenue. The Revenue has grown by 15.40% in the last year.
- AIR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.06% yearly.
EPS 1Y (TTM)26.72%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%31.11%
Revenue 1Y (TTM)15.4%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%15.92%
3.2 Future
- AIR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.18% yearly.
- Based on estimates for the next years, AIR will show a small growth in Revenue. The Revenue will grow by 1.07% on average per year.
EPS Next Y15.63%
EPS Next 2Y16.51%
EPS Next 3Y16.18%
EPS Next 5YN/A
Revenue Next Year17.8%
Revenue Next 2Y14.02%
Revenue Next 3Y11.37%
Revenue Next 5Y1.07%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 24.28, which indicates a rather expensive current valuation of AIR.
- Based on the Price/Earnings ratio, AIR is valued cheaply inside the industry as 91.78% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of AIR to the average of the S&P500 Index (26.94), we can say AIR is valued inline with the index average.
- With a Price/Forward Earnings ratio of 20.22, AIR is valued on the expensive side.
- AIR's Price/Forward Earnings ratio is rather cheap when compared to the industry. AIR is cheaper than 94.52% of the companies in the same industry.
- AIR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.28 | ||
| Fwd PE | 20.22 |
4.2 Price Multiples
- AIR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AIR is cheaper than 90.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.81 |
4.3 Compensation for Growth
- AIR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- AIR has a very decent profitability rating, which may justify a higher PE ratio.
- AIR's earnings are expected to grow with 16.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)1.9
EPS Next 2Y16.51%
EPS Next 3Y16.18%
5. Dividend
5.1 Amount
- AIR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
107.06
+3.39 (+3.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-06 2026-01-06/amc
Earnings (Next)03-25 2026-03-25
Inst Owners97.11%
Inst Owner Change0.15%
Ins Owners1.93%
Ins Owner Change-5.76%
Market Cap4.24B
Revenue(TTM)2.97B
Net Income(TTM)94.10M
Analysts83.64
Price Target101.45 (-5.24%)
Short Float %3.08%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.81%
Min EPS beat(2)8.56%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)9.37%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)6.16%
EPS beat(12)12
Avg EPS beat(12)5.88%
EPS beat(16)16
Avg EPS beat(16)5.63%
Revenue beat(2)2
Avg Revenue beat(2)4.72%
Min Revenue beat(2)3.12%
Max Revenue beat(2)6.33%
Revenue beat(4)3
Avg Revenue beat(4)3.22%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)5
Avg Revenue beat(8)1.93%
Revenue beat(12)8
Avg Revenue beat(12)2.36%
Revenue beat(16)11
Avg Revenue beat(16)2.07%
PT rev (1m)12.61%
PT rev (3m)14.22%
EPS NQ rev (1m)4.62%
EPS NQ rev (3m)4.81%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)3.99%
Revenue NQ rev (3m)9.92%
Revenue NY rev (1m)3.16%
Revenue NY rev (3m)7.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.28 | ||
| Fwd PE | 20.22 | ||
| P/S | 1.43 | ||
| P/FCF | N/A | ||
| P/OCF | 3025.21 | ||
| P/B | 2.71 | ||
| P/tB | 5.94 | ||
| EV/EBITDA | 14.81 |
EPS(TTM)4.41
EY4.12%
EPS(NY)5.29
Fwd EY4.94%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)0.04
OCFY0.03%
SpS75.02
BVpS39.46
TBVpS18.04
PEG (NY)1.55
PEG (5Y)1.9
Graham Number62.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 6.03% | ||
| ROCE | 10.53% | ||
| ROIC | 8.32% | ||
| ROICexc | 8.56% | ||
| ROICexgc | 12.77% | ||
| OM | 9.4% | ||
| PM (TTM) | 3.17% | ||
| GM | 19.29% | ||
| FCFM | N/A |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
ROICexc(3y)7.68%
ROICexc(5y)7.26%
ROICexgc(3y)10.94%
ROICexgc(5y)9.53%
ROCE(3y)9.32%
ROCE(5y)8.8%
ROICexgc growth 3Y18.86%
ROICexgc growth 5Y36.52%
ROICexc growth 3Y7.16%
ROICexc growth 5Y28.07%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
F-Score7
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.83 | ||
| Cap/Depr | 60.38% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 3.73 | ||
| Cash Conversion | 0.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.52 |
F-Score7
WACC10%
ROIC/WACC0.83
Cap/Depr(3y)80.23%
Cap/Depr(5y)64.82%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.72%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%31.11%
EPS Next Y15.63%
EPS Next 2Y16.51%
EPS Next 3Y16.18%
EPS Next 5YN/A
Revenue 1Y (TTM)15.4%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%15.92%
Revenue Next Year17.8%
Revenue Next 2Y14.02%
Revenue Next 3Y11.37%
Revenue Next 5Y1.07%
EBIT growth 1Y65.62%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year47.08%
EBIT Next 3Y22.53%
EBIT Next 5YN/A
FCF growth 1Y-217.73%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y-97.72%
OCF growth 3Y-21.7%
OCF growth 5YN/A
AAR CORP / AIR FAQ
What is the ChartMill fundamental rating of AAR CORP (AIR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AIR.
What is the valuation status of AAR CORP (AIR) stock?
ChartMill assigns a valuation rating of 4 / 10 to AAR CORP (AIR). This can be considered as Fairly Valued.
Can you provide the profitability details for AAR CORP?
AAR CORP (AIR) has a profitability rating of 6 / 10.
How financially healthy is AAR CORP?
The financial health rating of AAR CORP (AIR) is 4 / 10.
What is the expected EPS growth for AAR CORP (AIR) stock?
The Earnings per Share (EPS) of AAR CORP (AIR) is expected to grow by 15.63% in the next year.